As crude oil almost reached a record $120 a barrel in trading on the New York Mercantile Exchange yesterday, Hillary Clinton joined John McCain in advocating for a summer federal gas tax holiday.  Talking about reducing the prices Americans pay at the pump is definitely good politics.  But are the voters being pumped instead?

The difference between the two proposals is that while Senator McCain’s plan aids consumers it also decreases the funding for the Highway Trust Fund, Senator Clinton’s plan will not affect the Highway Trust Fund because she is proposing to pay for it by imposing a windfall profits tax on oil companies. 

There is no question that higher gasoline prices are now forcing the food and other consumer goods price hikes, and American consumers and businesses are hurting.  The truth is, we will have to live with higher energy prices for years to come.  The long-term pressure on oil prices comes from the increased demand for energy from countries like China that subsidize the energy costs for its manufacturers, fueling both the rabid production of goods and the wasteful allocation of energy resources.  

It’s time for the candidates to show that they can think strategically and address the real causes behind soaring gas prices that will, unfortunately, be hurting American voters way past the Election day.

The race in Indiana is definitely on.  Over the weekend both Democratic candidates and their surrogates criss-crossed the state.  Indiana would be a prized win for both Barack Obama and Hillary Clinton: a recent national Gallop tracking poll suggests that the Democratic Presidential candidates are in dead heat.

Barack Obama has fine-tuned his communication with working-class voters in Indiana, a demographic he has yet to win over.  The candidate spoke in Anderson, Indiana over the weekend.  It’s a community of 131, 312  people, hard-hit by the closure of the Delphi autoparts manufacturing plant last year.  Between 2006 and 2007, the number of people that left Anderson cancelled out the natural population increase in the community for that year.  The unemployment rate in February of 2008 was 6.8%, compared to 5.2% in Indiana, and 4.8% nationally.

What can the future President do for communities like Anderson across the nation?  Well, certainly doing nothing is not the answer.  Sen. Obama was right on target when he emphasized that plant closures like Delphi do not just affect the laid-off workers, “the whole community takes a blow.”  He spoke about giving tax breaks to companies that invest “right here in Anderson, ” and of his plans to renegotiate NAFTA, to include stricter labor provisions, because “we can’t compete against forced labor or child labor.” 

Yesterday, Hillary Clinton toured North Carolina with an entourage of senior retired military officers to outline solutions to strengthen our military. Earlier this month, Sen. Clinton was in Indiana, the state that holds its primary on the same day as North Carolina, visiting Allison Transmission plant that builds transmissions for military vehicles. During her visit, Clinton outlined a plan to limit the Defense Department’s ability to buy foreign-made products and would launch a “comprehensive review of our defense industrial base” to determine “where U.S. capabilities are lacking.” Her argument was that when our military relies on foreign manufacturers, we are not only outsourcing American jobs, we are also outsourcing our security.

It has become evident that the U.S. regulatory agencies or U.S. corporations themselves are simply not capable of ensuring the quality standards when the goods are manufactured in far away foreign factories. The cases of unsafe imports from countries like China, threatening the health and, sometimes even lives (as is the case with tainted Heparin) of the American consumers come to the public’s attention almost every month. It’s not a stretch to think that ensuring the quality of equipment our troops rely on in battle will be more difficult if it is made overseas and not in our own country. And if something were to go wrong in the military the general public will be less likely to find out. That is why it is imperative that our leaders think ahead and make sure that the equipment and armor that our military uses is made in the USA.

Sen. McCain visited Martin County, KY on the third day of his “It’s Time for Action Tour.”  He stopped to deliver his remarks in the town of Inez, where President Lyndon Johnson kicked off his War on Poverty in 1964. 

McCain acknowledged the persistent economic difficulties in this area: Martin county median household income is $22,768, with over 30% living below the poverty line.  And, just like he did in Michigan, McCain told the residents of Inez who gathered to hear him speak that the “manufacturing jobs are gone forever.”

Inexplicably, McCain focused majority of his discussion about how to help this distressed Appalachian area on providing broader access to high-speed internet services.  The Senator is talking about a county of just more than 12,000 where many residents still lack access to sewer systems and public water.  The high school dropout rates are higher than in the rest of the state, the county lost almost 4% of its population, while Kentucky gained over 4% in the span of 6 years, and the young people are leaving because there isn’t any future for them in towns like Inez.

Was McCain’s “straight-talk express” going by Inez too fast?  That must be it, because his proposals once again failed to match the reality on the ground.

Hillary Clinton campaign has launched a new ad in Indiana.

The ad states that Sen. Clinton is ready to “to turn our economy around.” In order to accomplish this, she would: stop tax breaks for companies that move jobs overseas; fix unfair trade deals; stand up to China; and create five million new jobs.

It’s certainly a tall order for any candidate to explain how they would fix the economy in 30 seconds. Sen. Clinton is on target with her ad.

Barack Obama has been running his own ad in Indiana since March 28, focusing on jobs and the economy.

He also promises to fix our trade laws and end tax breaks for companies that outsource jobs overseas.  Sen. Obama proposes to give the tax breaks to those companies that create jobs in America, instead.  

These are good proposals, but we can not ignore the role countries like China play in thousands of manufacturing jobs lost in the U.S. and the devastation this causes in communities across our nation.

China undervalues its currency, violates labor and environmental standards, and illegally subsidizes exports. Any serious discussion about fixing our economy, especially in states, like Indiana, must include candidates’ stance on our trade with China.

And … it’s the second day of John McCain’s tour of “forgotten” America.  The Senator was in Youngstown Ohio today delivering remarks at Youngstown State University.  John McCain tried to connect to his audience, telling them that “men and women of Youngstown know what it feels like to be counted out,” just like John McCain himself felt earlier in his Presidential campaign.  Well, this kinship with Youngstown residents John McCain claims is a bit of a stretch, unless he knows what it’s like to be unemployed. 

In the last 10 years the state of Ohio lost 270,800 manufacturing jobs.  And Youngstown area in particular has suffered unemployment rates averaging 6.3% in the last 10 years.  February unemployment rate was 2% higher than the national rate. 

John McCain was a lot more empathetic than usual towards his Youngstown audience.  He told them that he saw serious economic troubles in the state.  He even mused that “people in the know like to discourse about the new global economy–it’s always “global” this and “global” that.”  Funny, but McCain might as well have been talking about himself.  In his last major speech on the economy just a week ago, McCain said the following:  

“…I object when Senators Obama and Clinton and others preach the false virtues of economic isolationism. Senator Obama recently suggested that Americans are protectionist because they are bitter about being left behind in the global economy. Well, what’s his excuse for embracing the false promises of protectionism? Opening new markets for American goods and services is indispensable to our future prosperity. We can compete with anyone. Senators Obama and Clinton think we should hide behind walls, bury our heads and industries in the sand, and hope we have enough left to live on while the world passes us by.”

So what is John McCain’s answer to the “heads-in-the-sand” economic policies of his opponents?  His answer is software and tech companies, startup companies in alternative energies like wind and solar power, small businesses, and Youngstown’s “green space” initiative.  The Senator admits that these new industries “are a long way from matching the importance of the plants and factories that built the economies of this region” in the next paragraph.  Thanks, for making our case for us, Senator.  And please, try again.

Today, John McCain has embarked on a weeklong journey to discover “forgotten places in America,” also known as a “It’s Time For Action Tour.” After the first stop in Selma, Alabama, Sen. McCain will make several more stops in the state, and will continue on to the other “forgotten” parts of the nation including Youngstown, Ohio; the Appalachian region of Kentucky; New Orleans and Little Rock, Arkansas.

These economically struggling areas have large African American populations.  Selma, for instance, is 70% African American, with $28,000 a year median family income and 27% of the families living below poverty line.  Some have referred to the area that McCain’s tour will cover as “The Black Belt.” 

And what solutions does John McCain offer for these economically depressed communities?  According to Carly Fiorina, McCain’s economic advisor, the candidate will discuss his proposals for a summer gas tax holiday, which would save about 18 cents a gallon, and his “HOME Plan,” in which the government would help the owners of primary residences who meet certain qualifications pay their mortgages.

How about proposing some real changes on which to build a long-term economic policy, like reviving the industrial base in The Black Belt that create good-paying union jobs?  Studies show that unionized African Americans continue to make more money (on average, 12 percent more) and are much more likely to have health-insurance benefits and a pension plan than their non-union peers. 

If John McCain is serious about lifting people out of poverty in some of the “forgotten” areas of our country, instead of resorting to quick-fixes with unrealistic timelines, he should give some serious thought to a long-term economic policy solidly based on reviving the U.S. manufacturing base.

Barack Obama held a rally in North Carolina yesterday.  He talked about the ABC debate dismissing it as focused on “gotcha” politics rather than the substantive policy issues the voters care about.  “Last night I think we set a new record because it took us 45 minutes before we even started talking about a single issue that matters to the American people,” he said to the crowd of 2,000 cheering supporters. 

And Barack was absolutely right.  ABC was widely criticized by the viewers and the media alike.  We at AAM also were disappointed that opportunities to ask the candidates serious, thoughtful questions were missed by the moderators.  

However, here was Obama’s chance to talk about some of these important issues he didn’t get to during the debate. The event was held in North Carolina, after all, the state next in line to hold its primary after Pennsylvania.  There were crowds of supporters and plenty of national media to spread the message.  So, what did Sen. Obama say about the economy, the issue that concerns the voters the most, as poll after poll indicates?  “Domestically our economy is in shambles. Wall Street just figured this out, but Main Street knew it a long time ago.” He went on to say that most Americans “… are tired of the spin and (public relations),”and “They want straight talk.”

Well, “they” are listening and even though the sentiment is right, Barack’s speech is light on substance.  And this time there are no moderators to blame.

The two Democratic Presidential candidates, Sens. Hillary Clinton and Barack Obama, met again to debate the issues that the voters are most concerned about. 

But based on the questions that the ABC moderators, Charlie Gibson and George Stephanopoulos, were asking the candidates, the most pressing issues on the voters’ minds must have been the alleged sniper fire that Hillary Clinton experienced in Bosnia in 1990s and why Barack Obama doesn’t wear an American flag lapel pin.

There was one question on the economy, and the discussion and all the follow up questions centered on taxes. Yet, the moderators did not ask the candidates whether or not our leaders need to have an industrial policy, whether having a strong manufacturing base is important for the future of our country.  Surely, the voters are more concerned about where the next paycheck will be coming from, than about how much of their pay might go towards taxes.

In all fairness, Hillary Clinton did talk about creating 8 million new jobs in the new energy sector and the infrastructure projects.  She mentioned that those would be good-paying union jobs that will provide decent standard of living for the families. Barack Obama mentioned the credit card from the “Bank of China,” that our government relies on. However, there was no discussion about how long our society can sustain itself without a solid domestic manufacturing base, consuming more than we produce and paying for it with foreign creditors’ money.  Disappointing.